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IBM and Procter & Gamble (PG) are respectively planning debt offerings of $500M and $2B,...

IBM and Procter & Gamble (PG) are respectively planning debt offerings of $500M and $2B, sources tell Bloomberg. With both debt yields and equity valuations for blue-chip companies having plunged, many firms are opting to raise debt rather than issue stock - sometimes with the goal of financing stock buybacks.
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Comments (2)
  • cash
    , contributor
    Comments (504) | Send Message
     
    Stock buy back on debt. Works while it does. Can fail spectacularly as well. You can be left with even lower stock price, and a load of debt to boot. Ask all those people who borrowed to buy homes, took out HELOCs to goose up the value of their homes.

     

    May be this time it will work for these companies...
    1 Feb 2012, 02:13 PM Reply Like
  • sr1977
    , contributor
    Comments (343) | Send Message
     
    QE for businesses?
    1 Feb 2012, 02:29 PM Reply Like
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